Fees could eat into tax refunds on debit cards

[mahatmakanejeeves]

It takes a lot of money to be poor in Virginia. Just when I thought that Virginia had run out of ways to punish people for being poor, it proves me wrong. Sic semper tyrannis, indeed.

Virginia begins issuing debit cards — bearing possible fees — for tax refunds

http://www.washingtonpost.com/local/virginia-begins-issuing-debit-cards--bearing-possible-fees--for-tax-refunds/2013/04/14/b917366a-a3b1-11e2-be47-b44febada3a8_story.html

By Tom Jackman, Apr 15, 2013 12:15 AM EDT
The Washington Post

It’s national Tax Day on Monday, when many taxpayers turn their thoughts to the refund checks they’re expecting sometime in the next few weeks. But in Virginia this year, the state stopped issuing tax refund checks, instead sending the money to individual bank accounts via direct deposit or offering a debit card with the refund on it.

Yes, there’s a catch: As with all debit cards, there can be fees. Fees for cash withdrawals. Fees for balance inquiries. Fees for phone calls to ask how to make cash withdrawals or balance inquiries. A fee for not using the card. Sixteen different types of fees in all.

This has prompted some upset Virginians to ask: Why am I being charged a fee to collect my tax refund?
....

The cards are administered by Xerox, and Virginia tax officials say the program is saving the commonwealth about $200,000, the cost of printing and mailing tax refund checks every year. Xerox is not charging Virginia for the debit-card service, but the company is pocketing the fees.

When I read that, I had two thoughts. First, I wondered what sort of wedding gift Xerox is giving McDonnell's daughter for her wedding. This has to be worth somewhat more than a set of steak knives from Crate & Barrel. Second, I can be sure that the value of the Xerox stock held by Cuccinelli does not exceed $9,999, because beyond that point, he'd have to file a statement.

Cruel irony: Fees can eat into refund

http://www.dailyprogress.com/opinion/editorials/cruel-irony-fees-can-eat-into-refund/article_8c7ca91e-7adf-11e2-a02a-0019bb30f31a.html

Posted: Wednesday, February 20, 2013 12:15 am

Cruel irony: Fees can eat into refund The Daily Progress The Daily Progress

Leave it to the government to find a way to "charge" you for your own tax refund.

Virginia is saving itself money by doing away with refunds by check. Your only options now, barring a few exceptions, are to have your refund directly deposited to a bank account or to receive a debit card containing the amount of the refund.
....

That means your card comes with a catch — several, in fact. Fail to follow the rules, and you’ll be paying fees in order to spend your refund.

And, to heap insult onto injury, those most likely to be hurt are lower-income Virginians who do not have bank accounts to receive direct deposits.

The first time I filed last year, I made out a check to Virginia. Then Cuccinelli went off on one of his tirades in which he blamed people like me for being the source of all the threats to marriage. That made me angered enough to look at my taxes again. I saw that I had missed a credit, so I filed an amended return. I ended up getting a refund. It came in the form of a paper check, which I took to the bank and either deposited or cashed; I can't remember which. I didn't have to pay Xerox to get my own money back.

This is really disgraceful.

Virginia's debit card tax refunds prove costly for recipients

http://www.wjla.com/articles/2013/04/virginia-s-debit-card-tax-refunds-prove-costly-for-recipients--87552.html

Virginia's tax refund debit cards come with fees

http://www.wtop.com/675/3274605/Think-twice-before-using-tax-refund-card

[AllyCat]

1. Creditors want their cut of every transaction. That's why they handle our "flex spending"

at my employer. That way, every time you want to use your money held from YOUR check for FSA to pay for services/health related products, VISA gets a cut of the pie! Isn't that great? The merchant pays the transaction fee and the consumer pays the increased price in goods and services to cover the fee.

When I filed my taxes, I wanted to pay the tax service I used from my refund and that cost an extra $29.99 on top of the filing fees. Decided to just pay out of my account.

[AndyA]

2. The banks must be protected at all costs!

Unemployment is the same in some states. People who receive their unemployment benefits are charged $5 to speak to a teller if they have a question!

Considering the banks are mostly responsible for the economic mess, they shouldn't be allowed to profit from the devastation, but that would require leadership in Congress that represented the people. Of course, we don't have that.